Justin Sullivan
Apple (NASDAQ:AAPL) Chief Executive Tim Cook is on his third known visit to China in the past year, meeting with local suppliers as the tech giant continues to deal with sales pressure in the world's most populous country.
"At Apple we’ve always focused on creating the best products in the world for our customers," Cook said on his official Weibo account, according to translation. "And to make the best products we need partners who share our commitment to innovation and protecting the planet. BYD, Lens and Everwin are great examples of companies who are pushing the boundaries of what’s possible every day and we’re excited for the opportunities ahead."
BYD Electronics has more than 10,000 engineers to support Apple and helps with products such as the iPhone, iPad and Vision Pro, according to China Daily, which interviewed Cook.
"There's no supply chain in the world that's more critical to us than China," Cook told the news outlet. He also met with BYD Chief Executive Wang Chuanfu during the trip.
The 63 year-old Cook visited China in October 2023 and met with the country's vice premier, who signaled further support for the U.S. tech giant. Cook met with other Chinese dignitaries during the trip.
He also visited China in March 2023, lauding Apple's "symbiotic' relationship" with the country.
China pressure continues
Cook's visit to China comes as Apple grapples with intense competition in the smartphone market, notably from local companies.
Apple's iPhone sales in China fell 24% year-over-year in the first six weeks of 2024, amid rising competition from Huawei Technologies, Counterpoint Research said earlier this month.
Apple's share of the Chinese smartphone market fell to about 16% compared to 19% in the same period in 2023. Huawei's market share increased to about 17% from around 9% a year earlier.
Resellers in China have reportedly cut prices of iPhone 15 phones by up to $180. The tech giant's iPhone 15 Pro Max handsets are now selling at about 1,300 yuan ($180) lower than their original on Alibaba's Tmall.
Cook addressed Apple's situation in China on the company's most recent earnings call.
"If you look at iPhone in China Mainland, which I think has been the focus of a lot of interest, and you look at it in constant currency, so more of an operational view, we were down mid-single digits on iPhone," Cook said. "And so, it was the other things that drove the larger contraction year-over-year."
He continued: "On the good news side, we had solid growth on upgraders year-over-year in Mainland China and we had four of the top six smartphone models in urban China. Also, IDC just put out a note, that you may have seen, that we were the top brand in -- for the full year and for the December quarter. And so, there's some good news along with – obviously, we'd prefer not to [contract]."
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